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Natalya Brinza Project Manager

How Do App Developers Make Money?

There isn't any person who hasn't heard about mobile apps; they have gained great popularity among mobile phone users. So more and more developers try to build unique apps to earn some money from these apps. However, statistics has shown that 90% of apps in the app stores are free, so how do app developers make money? Surely, if there are free apps, the other 10% refers to paid ones. What is better, to make it paid or free? No doubts – free. With paid apps you will have to prove that your app is worth it Right, it's difficult, so it is better to make it free and then implement some methods of monetization. In this case, you will kill both birds with one stone: attract users, prove the app and earn your money.

Read also: «How do you make money from a free app»

Methods of making money from an app

1 Sponsorships

The main idea of this method is to develop a niche application with a specific target audience so that you can find a company or a person whose target audience is similar to yours and have a deal with them to sponsor your application.

2 Freemium upsell

How does app developers make money with freemium? The general idea of this model is that app store users can download and use it for free, but to get access to additional options he/she will have to complete in-app purchases. When it is about freemium upsell, I mean that these are apps that offer limited free functional set, but with an option to unlock full range of functionality with in-app purchases.

Read also: «Easy app development software»

3 Subscriptions

Subscription model is pretty clear and works good with constantly updated apps (like apps with unique audio or video content or news apps). These apps are free to download, but to get an access to the app's content the user must pay regular subscription fee.

App Developers Make Money

4 Amazon Underground

This is a relatively new way of making money in the Amazon app store. Interestingly, IAP and advertising are not allowed on Amazon Underground. If your application contains IAP, then you have to agree to waive these fees so that it can be listed there. As for users, they can take and use all the functions and pimp their app for free. But developers make money developing android apps by earning directly from Amazon, at $0.02 per user, per minute of use.

5 Affiliate income

Affiliate marketing is nothing but promotion and selling of someone's services and products in exchange for a percentage of the general revenue. With this method you are able to promote other apps within yours, promote products through banners or pop-ups and in-app store.

6 Advertisement

I can tell you that this is the most common way of making money with free applications. You display advertisement within your app and earn money from the ad networks. These are some ways you can earn from ads : pay per impressions (pay every time a user sees an ad), per install (clicks and installs), per click (clicks on an ad).

To sum up

If you are one of the developers that do not know yet how to make money developing apps, now you have enough knowledge to act on and make profit with your apps.

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